Government forces fishing companies to increase foreign wages
The Government has instituted a regime where workers on foreign fishing vessels are to be paid above minimum wage.
From next January, the new minimum hourly rate will be $1.25 above the minimum wage, currently at $10.25 an hour. A year later the minimum will carry a $1.75 premium, and in January 2009 this will rise to $2 an hour above the minimum wage.
The rises are part of a package the Government says is aimed at improving conditions on overseas vessels and come despite warnings that the increases could prevent Maori from participating fully in the fishing industry.
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Last year a report found some foreign crews were being paid as little as $195 a month and there have been cases of frustrated fishermen jumping ship or going on hunger strike in bids to get New Zealand authorities to intervene and improve their lot.
Immigration Minister David Cunliffe says the new framework is needed to ensure the industry operates according to established immigration policy and law. “The review aims to stop unsustainable practices such as foreign crew being taken advantage of or underpaid, and to ensure jobs for New Zealand crews where available.”
“While the government remains committed to a role for a well-regulated, sustainable charter fleet, it is important to avoid New Zealand fishing capacity being eroded by unfair, underpaid competitors.”
The new conditions will have to be met before the Government will issue new approvals to fishing companies wanting to engage foreign charter partners who employ foreign staff. These approvals are only granted when no New Zealand crew are available to do the work.
Industry leader Sealord Group Limited, which is 50 percent owned by AFL and 50 percent owned by Japanese seafood giant Nippon Suisan Kaisha, Limited, has calculated the move could cost it up to $7 million each year in extra overheads and the industry as a whole more than $30 million each year.
The Government proposal elicited an overwhelming response from fishing companies, iwi and representative organisations opposing the changes. Maori quota owners say they will be disproportionately punished for the behaviour of a few cowboys in the industry. They say that just as iwi are beginning to receive their fisheries settlement assets, the Government move places extra costs associated with fishing that quota, and that interference in charter arrangements between Maori companies and foreign vessels will make many iwi fishing businesses marginal or uneconomic.
“It will force Maori to lease their quota to other larger fishing companies, taking control out of their hands and locking them into a subservient and restricted role,” says Richard Batley, the chief executive of Raukura Moana Fisheries. His company is 100 percent owned and staffed by Maori and produces above average returns for its people.
He says this could put his company, and other iwi fishing enterprises in jeopardy and the end result may be that the potential and income from a Maori asset base – quota – will pass from Maori to non-Maori hands.
Ngahiwi Tomoana, chair of Ngati Kahungunu, is extremely concerned. “If Iwi can't afford to make arrangements to directly catch our quota then our only option will be to lease it to other New Zealand fishing companies. That takes control out of our hands and prevents iwi taking a greater role in the fishing industry.”
Iwi fishing companies say they have a fruitful partnership with Polish, Russian and Ukranian vessels and their crews. “These guys work for six months of the year for a wage which is two to three times higher than the average wage in their home country, they are well treated, they get bonuses and we profit share with the charter operators,” Mr Batley said. “It's good for them, it's good for us, and profitable iwi fishing companies are good for this country.”
The CEO of Aotearoa Fisheries Limited, Robin Hapi, said there were insufficient New Zealand vessels and crew to catch the available Annual Catch Entitlement (ACE) and foreign charter vessels played a crucial role in helping iwi to build their fisheries businesses. “This will significantly increase iwi catching costs. They can't pass on the increased costs to customers because prices are set by the international markets.”
Business Roundtable executive director Roger Kerr said it would simply mean “an annual transfer of perhaps $30 million of New Zealanders' wealth to foreigners for no useful purpose.”
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